ADM reports first-quarter profit beat
(Reuters) -Grain trader Archer-Daniels-Midland on Tuesday beat Wall Street expectations for first-quarter profit, helped by robust performance in its nutrition segment and lower costs.
The upbeat results come amid a cost-cutting and consolidation push by the company. ADM in February said it planned to cut costs by $500 million to $750 million over the next three to five years and has been slashing jobs and downsizing operations since then.
The company has seen its profit fall in recent quarters as prices of certain crops such as corn and soybean hit multi-year lows amid a global supply glut.
It is also reeling from an accounting scandal last year that drew federal scrutiny and sent its stock price tumbling.
Profit from Ag Services & Oilseeds, its largest segment, slumped 52% in the reported quarter, while the nutrition segment posted a 13% rise in profit.
ADM reaffirmed its full-year adjusted earnings forecast of $4 to $4.75 per share, but expects it to come at the lower end of the range.
The Chicago-based company posted an adjusted profit of 70 cents per share for the three months ended March 31, compared with analysts' average estimate of 67 cents, according to data compiled by LSEG.
(Reporting by Mrinalika Roy in Bengaluru; Editing by Shinjini Ganguli)
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